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Department of Valuation & Asset Management

 

  1. What is Assessment Tax?
  • According to Sec 2 – Local Government Act 1976 Assessment Tax or known as Quit Rent/Assessment Rate is a tax imposed on the property within the areas of the Council including:

                  a) Residential Building
                  b) Business/Commercial Building
                  c) Industrial Building
                  d)Land lots that are issued titles/grants

  1. How are Assessments determined?
  • Assessment Tax is determined based on the following formula
    Annual Value x Rate (%) = Assessment Tax

            Example :
                          Annual Value     RM 4,800.00 (Residential)
                          Rate     5.5%
                          Assessment Tax     RM 264.00    (Per Year)

  1. What is meant by Annual Value?
  • Annual Value is the estimated gross rent per year earned by a property if it is rented out.

       Example :
                     Rent              RM 400.00
                     Per Year             12 Months
                     Annual Value   RM 4,800.00

  1. What is meant by rate?
  • Rate is the partial percentage of the Annual Value set by the Selangor State Government in determining the tax to be paid. The rate fixed in determining Assessment Taxes for holdings under MPAJ are as follows:

                     Residential     5.5%
                     Business/Commercial     6.6%
                     Industrial     7.15%
                     Traditional Village     1.10%
                     Non-Traditional Village/Agricultural Land     2.2%

  1.  Why is the Assessment Tax imposed?
  • Assessment tax is a tax revenue for a Local Authority (LA) which is used for various services including:

          - Infrastructural maintenance (drainage, roads, street lights)
          - Payment of TNB bills (public street lights)
          - Cleaning of streets & open areas
       

  1. Can the exemption of assessment tax be considered?
  • In accordance with Section 134, the Local Government Act 1976 provisions states that the exemption of Assessment Tax can be considered when a holding or part thereof is used exclusively :

          - as public places for religious worships
          - as licenced public burial grounds or crematoria
          - a public schools
          - as public places for charitable purposes or for the purposes of science, literature or the fine arts.

  1. What is the Statement Notice of Valuation?
  • Is a notice issued a minimum of 30 days prior to the date the tax is enforced to notify the annual value of a property involved with a new amendment that will be enforced.
  1. What is the role of the owner after receiving the notice?
  • For owners who are dissatisfied, they may submit a written objection to the LA within a prescribed period and each qualified objection will be heard by the LA themselves in the Objection Hearing Committee Meeting.
  1. When will the results of the Assessment Tax Objections Hearing Committee Meeting be received by the owner?
  • Results from the meeting will be issued made known latest 2 months after the assessment tax objection hearing has convened in written and owner is requested to settle the tax imposed first before any adjustments are made subjected to the outcome of the meeting results.
  1. Can the owner appeal against the decisions that have been decided? How?
  • For owners who are still dissatisfied, they may submit the initial motion to the high court within a period of 14 days after the decision is made known. Decisions made at the federal court are final.